1

Difference Between Leadership and Management

Leadership is a quality of influencing people, so that the objectives are attained willingly
and enthusiastically. It is not exactly same as management, as leadership is one of the
major element of management.
Management is a discipline of managing things in the best possible manner. It is the art or
skill of getting the work done through and with others. It can be found in all the fields, like
education, hospitality, sports, offices etc.
One of the major difference between leadership and management, is management is for
formal and organized group of people only, whereas leadership is for both formal and
informal groups.
Comparison Chart

BASIS FOR
LEADERSHIP MANAGEMENT
COMPARISON

Meaning Leadership is a skill of Management is an art of systematically

leading others by organizing and coordinating things in an
examples. efficient way.

Basis Trust Control

Emphasis on Inspiring People Managing activities

Power Influence Rule

Focus on Encouraging change Bringing stability

Strategy Proactive Reactive

Formulation of Principles and guidelines Policies and Procedures

Perspective Leadership requires good Management has a short range

foresightedness. perspective.
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Definition of Leadership
The skill of leading a group of people and inspiring them towards a direction is known as
Leadership. It is an interpersonal process which involves influencing a person or a group,
so as to ensure achievement of objectives, willingly and enthusiastically.
It is not a lesson to be taught, but a quality which is possessed by only a few number of
people. The person who owns this quality is known as a leader. A leader is someone who
has a large number of people following him, as their inspiration. Some examples of leaders,
which are born in India are Mahatma Gandhi, Amitabh Bachchan, Kiran Bedi, Sachin
Tendulkar, Saina Nehwal, etc.
Leadership is an activity of guiding and directing people to work together in achieving the
objectives. It requires a good vision of thinking across the boundaries.
In an enterprise, you can see a number of leaders who are responsible for the work of their
team members. For the achievement of a single objective, the employees of the
organisation are divided into teams and each team is assigned a task which they have to
complete within the specified time. Each team comprises of a leader who is appointed on
the basis of merit cum seniority.
In the business environment, leadership is not only limited to persons, but an organisation
can also attain leadership in the market by defeating its competitors. Leadership can be in
terms of product, market share, brand, cost, etc.
Definition of Management
The word management is a combination of four terms, i.e. man+age+men+t (technique). In
this way, management refers to a technique used by a man for dealing and managing
persons (men) of different age group, to work together for achieving a common objective.
Although management is not confined to men only, it incorporates a complete balance of
5M i.e. Men, Money, Material, Machine, and Methods. The person who is in charge of the
activities of management in an organisation is known as Manager.
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Management Process
Now, lets discuss what management is? And from where it starts? The answer is
management starts from your home. All of us have seen our mother taking care of our
needs whether they are small or big, maintaining the budget of the household, takes
decisions regarding investment or finance, makes plans for our future, keeps a check on our
activity, organizes the schedule, guides and motivates us for achieving our career objective
etc. thats all management. These are the functions of Management, i.e. Planning,
Controlling, Organizing, Leading & Motivating and Decision Making.
Key Differences Between Leadership and Management
The major difference between leadership and management are as under:
1. Leadership is a virtue of leading people through encouraging them. Management is a
process of managing the activities of the organization.
2. Leadership requires trust of followers on his leader. Unlike Management, which
needs control of manager over its subordinates?
3. Leadership is a skill of influencing others while Management is the quality of the
ruling.
4. Leadership demands foresightedness of leader, but Management has a short range
vision.
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5. In leadership, principles and guidelines are established, whereas, in the case of

management, policies and procedures are implemented.
6. Leadership is Proactive. Conversely, management is reactive in nature.
7. Leadership brings change. On the other hand, Management brings stability.
Conclusion
Leadership and Management are inseparable in nature, if there is management, there is
leadership. In fact, the qualities of a manager require leadership skills to inspire his
subordinate. In an organization, you can see both management and leadership. There is a
manager in a department and a number of leaders who work with their teams in assisting
the organization in the accomplishment of their goals. Many times managers play the role
of a leader too, at the demand of the organization. So they both go side by side as a
complement to each other. An organization needs both for its growth and survival.
Management is all about the arrangement and maintenance of the 5M while leadership is
about persuading people in a positive direction for digging out talent in them.
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Difference Between Management and Administration

Simply put, management can be understood as the skill of getting the work done from
others. It is not exactly same as administration, which alludes to a process of effectively
administering the entire organization. The most important point that differs management
from the administration is that the former is concerned with directing or guiding the
operations of the organization, whereas the latter stresses on laying down the policies and
establishing the objectives of the organization.
Broadly speaking, management takes into account the directing and controlling functions
of the organization, whereas administration is related to planning and organizing function.
With the passage of time, the distinction between these two terms is getting blurred, as
management includes planning, policy formulation, and implementation as well, thus
covering the functions of administration. In this article, you will find all the substantial
differences between management and administration.
Comparison Chart

BASIS FOR
MANAGEMENT ADMINISTRATION
COMPARISON

Meaning An organized way of managing The process of administering an

people and things of a business organization by a group of people is
organization is called the known as the Administration.
Management.

Authority Middle and Lower Level Top level

Role Executive Decisive

Concerned with Policy Implementation Policy Formulation

Area of It works under administration. It has full control over the activities
operation of the organization.

Applicable to Profit making organizations, i.e. Government offices, military, clubs,

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BASIS FOR
MANAGEMENT ADMINISTRATION
COMPARISON

business organizations. business enterprises, hospitals,

religious and educational
organizations.

Decides Who will do the work? And How What should be done? And When is
will it be done? should be done?

Work Putting plans and policies into Formulation of plans, framing

actions. policies and setting objectives

Focus on Managing work Making best possible allocation of

limited resources.

Key person Manager Administrator

Represents Employees, who work for Owners, who get a return on the
remuneration capital invested by them.

Function Executive and Governing Legislative and Determinative

Definition of Management
Management is defined as an act of managing people and their work, for achieving a
common goal by using the organizations resources. It creates an environment under which
the manager and his subordinates can work together for the attainment of group objective.
It is a group of people who use their skills and talent in running the complete system of the
organization. It is an activity, a function, a process, a discipline and much more.
Planning, organizing, leading, motivating, controlling, coordination and decision making
are the major activities performed by the management. Management brings together 5Ms
of the organization, i.e. Men, Material, Machines, Methods, and Money. It is a result oriented
activity, which focuses on achieving the desired output.
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Difference Between Management and Administration

Definition of Administration
The administration is a systematic process of administering the management of a business
organization, an educational institution like school or college, government office or any
nonprofit organization. The main function of administration is the formation of plans,
policies, and procedures, setting up of goals and objectives, enforcing rules and regulations,
etc.
Administration lays down the fundamental framework of an organization, within which the
management of the organization functions.
The nature of administration is bureaucratic. It is a broader term as it involves forecasting,
planning, organizing and decision-making functions at the highest level of the enterprise.
Administration represents the top layer of the management hierarchy of the organization.
These top level authorities are the either owners or business partners who invest their
capital in starting the business. They get their returns in the form of profits or as a
dividend.
Key Differences Between Management and Administration
The major differences between management and administration are given below:
1. Management is a systematic way of managing people and things within the
organization. The administration is defined as an act of administering the whole
organization by a group of people.
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2. Management is an activity of business and functional level, whereas Administration

is a high-level activity.
3. While management focuses on policy implementation, policy formulation is
performed by the administration.
4. Functions of administration include legislation and determination. Conversely,
functions of management are executive and governing.
5. Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by the administration.
6. A group of persons, who are employees of the organization is collectively known as
management. On the other hand, administration represents the owners of the
organization.
7. Management can be seen in the profit making organization like business
enterprises. Conversely, the Administration is found in government and
military offices, clubs, hospitals, religious organizations and all the non-profit
making enterprises.
8. Management is all about plans and actions, but the administration is concerned with
framing policies and setting objectives.
9. Management plays an executive role in the organization. Unlike administration,
whose role is decisive in nature.
10. The manager looks after the management of the organization, whereas
administrator is responsible for the administration of the organization.
11. Management focuses on managing people and their work. On the other hand,
administration focuses on making the best possible utilization of the organizations
resources.
Conclusion
Theoretically, it can be said that both are different terms, but practically, you will find that
the terms are more or less same. You would have noticed that a manager performs both
administrative and functional activities. Although the managers who are working on the
topmost level are said to be the part of administration whereas the managers working on
the middle or lower level represents management. So, we can say that administration
is above management.
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How to personality, values and perception determine selection of candidates for a

job?
Personality
Personality encompasses a persons relatively stable feelings, thoughts, and behavioral
patterns. Each of us has a unique personality that differentiates us from other people, and
understanding someones personality gives us clues about how that person is likely to act
and feel in a variety of situations. To manage effectively, it is helpful to understand the
personalities of different employees. Having this knowledge is also useful for placing
people into jobs and organizations.
If personality is stable, does this mean that it does not change? You probably remember
how you have changed and evolved as a result of your own life experiences, parenting style
and attention you have received in early childhood, successes and failures you experienced
over the course of your life, and other life events. In fact, personality does change over long
periods of time. For example, we tend to become more socially dominant, more
conscientious (organized and dependable), and more emotionally stable between the ages
of 20 and 40, whereas openness to new experiences tends to decline as we age (Roberts,
2006). In other words, even though we treat personality as relatively stable, change occurs.
Moreover, even in childhood, our personality matters, and it has lasting consequences for
us. For example, studies show that part of our career success and job satisfaction later in
life can be explained by our childhood personality
Is our behavior in organizations dependent on our personality? To some extent, yes, and to
some extent, no. While we will discuss the effects of personality for employee behavior, you
must remember that the relationships we describe are modest correlations. For example,
having a sociable and outgoing personality may encourage people to seek friends and
prefer social situations. This does not mean that their personality will immediately affect
their work behavior. At work, we have a job to do and a role to perform. Therefore, our
behavior may be more strongly affected by what is expected of us, as opposed to how we
want to behave. Especially in jobs that involve a lot of autonomy, or freedom, personality
tends to exert a strong influence on work behavior (Barrick & Mount, 1993),something to
consider when engaging in Organizing activities such as job design or enrichment.
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Big Five Personality Traits

Openness is the degree to which a person is curious, original, intellectual, creative, and
open to new ideas. People high in openness seem to thrive in situations that require
flexibility and learning new things. They are highly motivated to learn new skills, and they
do well in training settings (Barrick & Mount, 1991; Lievens, et. al., 2003). They also have
an advantage when they enter into a new organization. Their open-mindedness leads them
to seek a lot of information and feedback about how they are doing and to build
relationships, which leads to quicker adjustment to the new job (Wanberg & Kammeyer-
Mueller, 2000). When given support, they tend to be creative (Baer & Oldham, 2006). Open
people are highly adaptable to change, and teams that experience unforeseen changes in
their tasks do well if they are populated with people high in openness (LePine, 2003).
Compared with people low in openness, they are also more likely to start their own
business (Zhao & Seibert, 2006). The potential downside is that they may also be prone to
becoming more easily bored or impatient with routine.
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Conscientiousness refers to the degree to which a person is organized, systematic,

punctual, achievement-oriented, and dependable. Conscientiousness is the one personality
trait that uniformly predicts how high a persons performance will be across a variety of
occupations and jobs (Barrick & Mount, 1991). In fact, conscientiousness is the trait most
desired by recruiters, and highly conscientious applicants tend to succeed in interviews
(Dunn, et. al., 1995; Tay, et. al., 2006). Once they are hired, conscientious people not only
tend to perform well, but they also have higher levels of motivation to perform, lower
levels of turnover, lower levels of absenteeism, and higher levels of safety performance at
work (Judge & Ilies, 2002; Judge, et. al., 1997; Wallace & Chen 2006; Zimmerman, 2008).
Ones conscientiousness is related to career success and career satisfaction over time
(Judge & Higgins, 1999).Finally, it seems that conscientiousness is a valuable trait for
entrepreneurs. Highly conscientious people are more likely to start their own business
compared with those who are not conscientious, and their firms have longer survival rates
(Certo & Certo, 2005; Zhao & Seibert, 2006). A potential downside is that highly
conscientious individuals can be detail-oriented rather than seeing the big picture.
Extraversion is the degree to which a person is outgoing, talkative, sociable, and enjoys
socializing. One of the established findings is that they tend to be effective in jobs involving
sales (Barrick & Mount, 1991; Vinchur, et. al., 1998). Moreover, they tend to be effective as
managers and they demonstrate inspirational leadership behaviors (Bauer, et. al., 2006;
Bono & Judge, 2004). extraverts do well in social situations, and, as a result, they tend to be
effective in job interviews. Part of this success comes from preparation, as they are likely to
use their social network to prepare for the interview (Caldwell & Burger, 1998; Tay & Van
Dyne, 2006). Extraverts have an easier time than introverts do when adjusting to a new job.
They actively seek information and feedback and build effective relationships, which helps
them adjust (Wanberg & Kammeyer-Mueller, 2000). Interestingly, extraverts are also
found to be happier at work, which may be because of the relationships they build with the
people around them and their easier adjustment to a new job (Judge & Mount, 2002).
However, they do not necessarily perform well in all jobs; jobs depriving them of social
interaction may be a poor fit. Moreover, they are not necessarily model employees. For
example, they tend to have higher levels of absenteeism at work, potentially because they
may miss work to hang out with or attend to the needs of their friends (Judge, et. al., 1997)
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Agreeableness is the degree to which a person is affable, tolerant, sensitive, trusting, kind,
and warm. In other words, people who are high in agreeableness are likeable people who
get along with others. Not surprisingly, agreeable people help others at work consistently;
this helping behavior does not depend on their good mood (Ilies, et. al., 2006). They are
also less likely to retaliate when other people treat them unfairly (Skarlicki, et. al., 1999).
This may reflect their ability to show empathy and to give people the benefit of the doubt.
Agreeable people may be a valuable addition to their teams and may be effective leaders
because they create a fair environment when they are in leadership positions (Mayer, et. al.,
2007). At the other end of the spectrum, people low in agreeableness are less likely to show
these positive behaviors. Moreover, people who are disagreeable are shown to quit their
jobs unexpectedly, perhaps in response to a conflict with a boss or a peer (Zimmerman,
2008). If agreeable people are so nice, does this mean that we should only look for
agreeable people when hiring? You might expect some jobs to require a low level of
agreeableness. Think about it: When hiring a lawyer, would you prefer a kind and gentle
person or someone who can stand up to an opponent? People high in agreeableness are
also less likely to engage in constructive and change-oriented communication (LePine &
Van Dyne, 2001). Disagreeing with the status quo may create conflict, and agreeable people
may avoid creating such conflict, missing an opportunity for constructive change.
Neuroticism refers to the degree to which a person is anxious, irritable, temperamental,
and moody. It is perhaps the only Big Five dimension where scoring high is undesirable.
Neurotic people have a tendency to have emotional adjustment problems and habitually
experience stress and depression. People very high in Neuroticism experience a number of
problems at work. For example, they have trouble forming and maintaining relationships
and are less likely to be someone people go to for advice and friendship (Klein, et. al.,
2004). They tend to be habitually unhappy in their jobs and report high intentions to leave,
but they do not necessarily actually leave their jobs (Judge, et. al., 2002; Zimmerman,
2008)) Being high in Neuroticism seems to be harmful to ones career, as these employees
have lower levels of career success (measured with income and occupational status
achieved in ones career). Finally, if they achieve managerial jobs, they tend to create an
unfair climate at work (Mayer, et. al., 2007).
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In contrast, people who are low on Neuroticismthose who have a positive affective
dispositiontend to experience positive moods more often than negative moods. They
tend to be more satisfied with their jobs and more committed to their companies (Connolly
& Viswesvaran, 2000; Throresen, et. al., 2003). This is not surprising, as people who
habitually see the glass as half full will notice the good things in their work environment
while those with the opposite character will find more things to complain about. Whether
these people are more successful in finding jobs and companies that will make them happy,
build better relationships at work that increase their satisfaction and commitment, or
simply see their environment as more positive, it seems that low Neuroticism is a strong
advantage in the workplace.
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Values

Values refer to peoples stable life goals, reflecting what is most important to them. Values
are established throughout ones life as a result of accumulating life experiences, and values
tend to be relatively stable (Lusk & Oliver, 1974; Rokeach, 1973). The values that are
important to a person tend to affect the types of decisions they make, how they perceive
their environment, and their actual behaviors. Moreover, a person is more likely to accept a
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job offer when the company possesses the values he or she cares about (Judge & Bretz,
1972; Ravlin & Meglino, 1987). Value attainment is one reason people stay in a company.
When a job does not help them attain their values, they are likely to decide to leave if they
are dissatisfied with the job.
Values a person holds will affect their employment. For example, someone who values
stimulation highly may seek jobs that involve fast action and high risk, such as firefighter,
police officer, or emergency medicine. Someone who values achievement highly may be
likely to become an entrepreneur or intrapreneur. And an individual who values
benevolence and universalism may seek work in the nonprofit sector with a charitable
organization or in a helping profession, such as nursing or social work. Like personality,
values have implications for Organizing activities, such as assigning duties to specific jobs
or developing the chain of command; employee values are likely to affect how employees
respond to changes in the characteristics of their jobs.
In terms of work behaviors, a person is more likely to accept a job offer when the company
possesses the values he or she cares about. A firms values are often described in the
companys mission and vision statements, an element of the Planning function (Judge &
Bretz, 1992; Ravlin & Meglino, 1987). Value attainment is one reason people stay in a
company. When a job does not help them attain their values, they are likely to decide to
leave if they are also dissatisfied with the job (George & Jones, 1996).